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Bullfrog Bank and Trust Co. May Pay Depositors In Full Through the intervention of the State Banking Board, it is altogether likely that the depositors of the Bullfrog Bank and Trust company, recently suspended, will receive dollar for dollar in the wind-up of the bank, and "that the time of the final liquidation will not be long delayed. When the Bullfrog Bank and Trust company was closed by the State Bank Examiner, in July, the affairs of the institution looked hopeless and depositors seemingly, had but little show of getting 10 cents on the dollar of their deposits. Owen Young of South Dakota was the principal stockholder and was the largest depositor; in fact he was practically the owner of the bank. He had a short time previously attempted to get "out from under" the bank by a transfer of his stock interests to J. A. Small and F. L. Warburton, cashier and assistant cashier, respectively, so that he only appeared on the books as a depositor. But when the Banking Board got hold of the bank, it brought about an agreement with Young, Small and Warberton, whereby every asset of the bank was to be turned over to a trustee to be named by the Banking Board, and that as depositors, their claims should be subsequent to the claims of all other depositors. Young's deposit was something like $75,000, but there was practically no money on hand. Young also signed an agreement that after the bank had liquidated should there still be insufficient to pay the creditors of the bank, exclusive of his deposit, he would contribute a further amount, equal to 20 per cent of the claims of the creditors; in other words, Young was to sacrifice his entire deposit and submit to a further assessment of 20 per cent of the claims of creditors, in settlement of his liabilities to creditors of the bank should conditions so require. The Banking Board appointed M. M. Van Fleet, State Bank Examiner, as trustee, to act without pay, receiving only his actual travéling and living expenses while actually engaged in the administration of the trust. Mr. Van Fleet appointed Hon. Clay Tallman as his attorney. A notice, embodying the forgoing, was sent out to all depositors of the bank, together with an agreement for the signature of the depositors, whereby they were to consent to such an arrangement and also agreeing to accept dividends upon their deposits at stated intervals. Under the arrangement made it was stated that a 33 1-3 per cent dividend could be paid at once, and that within a comparatively short time, ever cent due creditors, might be expected. Within the past few days the Banking Board received word from Attorney Tallman, that every depositor of the bank, save one, had signed the agreement; that while the one in question was the largest depositor outside of Owen Young and was in Mexico, he had sent word signifying his acceptance of the terms, SO that there now remains nothing in the way to a speedy liquidation of the bank's affairs. Trustee Van Fleet will proceed to Rhyolite this week, perhaps, and begin his work, and it is altogether likely that before the first of the year, or within six months after its suspension, the Bullfrog Bank and Trust company will have paid every depositor, except Young, a director, every cent owing him. This is the second bank to come into the hands of the State Banking Board in the brief period of its existence. The first one was the Bank of Pioneer, which was closed by the board, but whose depositors were paid in full within 60 days of the bank's suspension. The depositors of the second bank, the Bullfrog Bank and Trust company, will fare equally well, and in marked contrast with those of any other bank that ever suspended business, within the confines of Nevada. The State Banking Board met in Carson City this past week to complete its arrangements for the Bullfrog Bank and Trust company and to consider other matters of importance that came to its attention. The board also appeared in the supreme court as defendant in a mandamus suit brought by a citizen of Reno, who had, as an individual, applied for a charter from the board to do a banking business. As the banking law specifically states that only corporations can do a banking business in Nevada, the individual in question was denied a charter for a private or unincorporated bank. He thereupon brought suit to mandamus the board to issue a charter, on the ground that the provision was unconstitutional, being in restraint of the rights of an individual to engage in business. Although a demurrer was entered, the case will likely be tried upon its merits. While the constitutionality of this particular section of the law is in question, the balance of the law, happily, is unassailed. The State Banking Board of Nevada is composed of Governor D. S. Dickerson, chairman. Former Governor Adams, Samuel W. Belford, A. B. Witcher and Charles S. Sprague; bank examiner and secretary of the board, M. M. Van Fleet.
